Print
The Vermont Statutes Online
Title
09
:
Commerce and Trade
Chapter
111A
:
APPROVAL OF INTERNATIONAL TRADE AGREEMENTS
§
4125. Findings and purpose
The General
Assembly makes the following findings of fact:
(1) Today's
international trade agreements have impacts which extend significantly beyond
the bounds of traditional trade matters such as tariffs and quotas. Restrictive
government procurement rules, for example, may undermine State purchasing laws
and preferences that are designed to promote good jobs and a healthy
environment.
(2) As the
subject matters contained within trade agreements expand, these agreements may
impact on areas traditionally governed by the states, including economic
development, financial investment, environmental policies, pharmaceutical
policy, recreational services, utilities and energy distribution, and
agricultural subsidies. The subject matter addressed by trade agreements is
constantly evolving into new areas and becomes more likely over time to
infringe on State law or policy.
(3) Specific
examples in one area important to Vermont-State economic development and
environmental policies-that might be constrained by government procurement
provisions in international trade agreements include buy-local laws, electronic
waste recycling laws, and renewable energy purchasing requirements. Measures
that conflict with obligations in one or more international trade agreements
could be challenged as potential barriers to trade.
(4) Input from
states has been essential to the Office of the U.S. Trade Representative's
understanding of state practices that may be impacted by policies in trade
agreements. For example, after states protested that language in the
Australia-United States trade agreement was ambiguous and created uncertainty
as to whether it applied to Medicaid preferred drug lists, the United States
specifically clarified in the Korea-United States trade agreement that similar
pharmaceutical policies did not apply to Medicaid.
(5) Currently,
the Office of the U.S. Trade Representative asks state governors, without input
from state legislatures, whether they will commit state purchasing to trade
rules. States, through their governors, may opt into or out of trade rules
dealing with government procurement.
(6)
Historically, the General Assembly and the Governor have worked together to
adopt and implement State procurement policies. The decision to consent to the
coverage of Vermont under procurement provisions of international trade
agreements should also include consultation with and agreement by the
Legislative Branch.
(7) If future
trade rules permit states to opt into or out of trade rules dealing with
investment and services, in addition to procurement, then the General Assembly
intends for the procedures in this chapter to apply to those provisions as
well.
(8) It is
important for the State to provide information and recommendations to Congress
and the U.S. Trade Representative about the possible impacts of proposed trade
agreements on State law and policy. (Added 2009, No. 78 (Adj. Sess.), § 43;
eff. April 15, 2010.)